Moody’s Investors Service has upgraded the credit rating outlook of Vietnam International Bank (VIB)’s local currency deposits and issuer ratings to “positive” from its previous “stable”.

According to the report issued by Moody’s, VIB continues to be included in the group of banks with the highest credit rating in the local banking industry. This signals Moody’s positive assessment of developments in the business environment in general and performance of the banking industry in particular.

VIB recorded significant achievements last year thanks to its efficient, safe, and sustainable development, and focused on sustainable sources of revenue, cost optimization, and efficient risk management. It was rated by Moody’s as among the group of banks having the highest financial strength for three consecutive years, from 2014 to 2016.

In the first quarter of this year, VIB posted after-tax profit of VND126 billion ($5.53 million), up 14 per cent year-on-year. Its net interest income, net fee and commission income, and gains from investment securities saw growth of 16 per cent, 31 per cent and 21 per cent, respectively, year-on-year.

Debts purchased from the Vietnam Asset Management Company (VAMC) have been handled well, resulting in the bank’s non-performing loan ratio declining to 2.19 per cent as at March 31 from 2.58 per cent at the end of 2016. Meanwhile, its provision costs fell 8 per cent compared with the same period last year.

Its total assets stood at nearly VND106 trillion ($4.66 billion) as at March 31, VND1.4 trillion ($61.6 million) higher from a year ago, primarily due to good growth momentum in its lending portfolio. Its lending balance, including corporate bonds, reached VND73.4 trillion ($3.23 billion). Loans to customers rose 5.7 per cent year-on year, standing at VND3.4 trillion ($149.6 million) as at end-March.

From January to March, VIB also mobilized deposits worth more than VND4 trillion ($176 million), including certificates of deposit. “We have made continuous improvements to our existing product portfolio, developed new products, and simplified processes to provide competitive financial services and products to best meet customers’ needs,” the bank said in a statement.

At its annual general meeting last month, it approved a 44.6 per cent dividend based on its charter capital, including 5 per cent in cash and 39.6 per cent in bonus shares.

Its Board of Directors also proposed a plan to mobilize funds, expected to cost up to VND7 trillion ($308.7 million), on the secondary market for up to ten years in order to strengthen its capital adequacy ratio (CAR) and other financial indicators to serve its business.

This year, VIB aims to earn pre-tax profit of VND750 billion ($33 million), 7 per cent higher than last year’s figure and targets VND120 trillion ($5.3 billion) in total assets, up 15 per cent, and will strive for a minimal decline in its credit balance with VAMC and for non-performing loans (NPLs) to be at less than 3 per cent.